Final answer:
The correct statements about research and development expenditure according to IAS 38 are i) capitalizing development expenditure if conditions are met, ii) writing off research expenditure as incurred, and iv) disclosing capitalized development expenditure in the statement of financial position. Statement iii) regarding a 5-year maximum amortization period is incorrect.
Step-by-step explanation:
According to IAS 38 Intangible assets, the following statements about research and development expenditure are correct: i. If certain conditions are met, an entity may decide to capitalise development expenditure. This means that if the development cost can be reliably measured and the project is expected to generate future economic benefits, the cost can be capitalized as an intangible asset. ii. Research expenditure, other than capital expenditure on research facilities, must be written off as incurred. This aligns with the prudence concept, ensuring that expenses are recognized promptly when there's uncertainty regarding future economic benefits. iv. Capitalised development expenditure must be disclosed in the statement of financial position under intangible non-current assets. Once capitalized, such expenditure is recognized as an asset and disclosed accordingly. IAS 38 does not specify an amortisation period, thus iii. Capitalised development expenditure must be amortised over period not exceeding 5 years is incorrect; the amortization period should reflect the asset's useful life.